Ginnie Mae has signed a Memorandum of Understanding (MOU) with Japan’s Housing Finance Agency in a move Ginnie says will give further credibility to its mortgage guarantee model.
The agreement was signed last last week by Ginnie Mae President Ted Tozer and Japan’s Housing Finance Agency President Shinya Shishido as the first inter-governmental MOU in Ginnie Mae history. It will allow Japan to explore Ginnie Mae’s model to promote homeownership within the country.
“This is a significant development for Ginnie Mae,” Tozer said of the agreement. “Japan’s interest in working with us, to learn more about how Ginnie Mae is able to fund virtually all FHA, VA, and RHS loans in the United States and support mortgage lending by small and medium sized lenders, demonstrates that our model works. We are appreciative that the JHF recognizes how strong our model is and that they want to learn from it and emulate it.”
The MOU recognizes Ginnie Mae’s securitization success in attracting global capital—including investment from Japan, the entities said.
“The Japan Housing Finance Agency will greatly benefit from this important alliance by tapping into Ginnie Mae’s knowledge of cutting-edge securitization methods,” said JHF President Shinya Shishido.
Both organizations hope to improve understanding of how to form, guarantee and sell securitized instruments in the interest of promoting homeownership growth in Asia and other countries, they said.
Written by Elizabeth Ecker